Arena Pharmaceuticals ARNA unveils its next round of earnings this Monday, November 09. Here is Benzinga's everything-that-matters guide for the earnings announcement.
Net Income, Earnings, And Earnings Per Share
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Arena Pharmaceuticals EPS loss is expected to be around $1.87, according to sell-side analysts. Sales will likely be near $1.23 million. In the same quarter last year, Arena Pharmaceuticals reported a loss per share of $1.46 on sales of $1.35 million.
Why Analyst Estimates And Earnings Surprises Are Important
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be down 28.08%. Revenue would have fallen 8.89% from the same quarter last year. Arena Pharmaceuticals's reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q2 2020 | Q1 2020 | Q4 2020 | Q3 2019 |
|---|---|---|---|---|
| EPS Estimate | -2.03 | -2.28 | -1.55 | -1.32 |
| EPS Actual | -1.61 | -2 | -1.76 | -1.46 |
| Revenue Estimate | 1.47 M | 1.58 M | 1.74 M | 2.06 M |
| Revenue Actual | 0 | 262.00 K | 3.00 M | 1.35 M |
Stock Performance
Shares of Arena Pharmaceuticals were trading at $86.19 as of November 05. Over the last 52-week period, shares are up 85.54%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Arena Pharmaceuticals is scheduled to hold the call at 16:30:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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